Stylam Industries Limited

Stylam Industries reported a total turnover of INR 1025 crores for FY25, representing a 12% year-over-year growth from INR 914 crores. The PAT margin for the year was 11.81%, a decrease from 14% in the previous year, while the EBITDA margin stood at 18.06%, down from 20.06% in FY24. For Q4 FY25, the company posted a turnover of INR 265 crores, an increase from INR 234 crores in the corresponding quarter, with a PAT margin of approximately 10.96%.

The company is undertaking a significant capacity expansion with a total capital outlay of INR 260 crores, of which INR 120 crores has already been deployed. This includes new laminate presses in the existing Manak Tabra plant, increasing production capacity by 800-900 metric tons per month. A new manufacturing facility is under construction and is on track for commissioning by September 25, with the remaining INR 160 crores of capex expected to be spent by the first half of FY26. This expansion is projected to add 6,000 MTPA to total capacity and has a revenue potential of INR 750-800 crores at full utilization.

Export performance was a key driver of growth, reaching INR 731 crores in FY25, a remarkable increase of 19.6% from INR 611 crores in the previous year. Management expects export sales to increase by more than 20% in FY26 and aims for a minimum of INR 1200 crores in overall export revenue within two years. The company maintains a strong global presence, selling in its own brand name in 50% of countries, including the USA, Cambodia, Indonesia, and Netherlands, with OEM sales also contributing significantly.

In contrast to exports, domestic revenue stood at INR 294 crores (corrected from 29.4 crores in transcript), reflecting a marginal decline of 3% from INR 303 crores in the previous year. The Managing Director openly acknowledged that the domestic market is 'very weak' and attributed this to 'family compulsions' preventing his personal involvement. Despite efforts in regional advertising, the company is still working to improve its dealer network and overall domestic market share.

The solid acrylic surface business, though relatively new (3-4 years old), generated approximately INR 19.5-20 crores in revenue in FY25 and is EBITDA positive. Management is optimistic about its future growth, especially following a recent exhibition and potential strategic tie-ups with export manufacturing companies. If a key tie-up materializes, the acrylic business revenue could potentially reach INR 100-200 crores in FY26.

Working capital days increased to 120 days from 107 days in the previous year. This was attributed to the need for inventory for the new operational plant, increased Q4 sales, and strategies involving volume discounts. Management clarified that while realization per sheet might fluctuate due to product mix (e.g., thicker boards), realization per kilogram is a more relevant metric and has shown improvement, from INR 126/kg in FY24 to INR 130/kg in domestic and INR 155/kg to INR 156/kg in export.